2000 - JAMB Economics Past Questions and Answers - page 1

1
Economic can be defined as?
A
reduction in spending in the face of competing alternative
B
allocation of resources to alternative uses
C
economic behaviour of small units like the household and the firm
D
the study of economic aggregates like inflation and national income
correct option: b
Users' Answers & Comments
2
(i) What and how much will be produced
(ii) How will it be produced
(iii) For whom will it be produced
(IV) How much will be exported and consumed?
From the above, identify the combination of basic resource allocation questions in economic analysis.
A
i, ii and iii
B
i, ii and iv
C
i, iii and iv
D
ii, iii and iv
correct option: a
Users' Answers & Comments
3
In a capitalist economy, the economic problem of what goods to produce is decided mainly by?
A
shadow prices
B
profit level
C
relative prices
D
a central planner
correct option: b
Users' Answers & Comments
4
Which of the following is an example of derived demand?
A
Tax relief
B
Labour
C
Wage increase
D
Entertainment
correct option: b
Users' Answers & Comments
5
Use the information below to answer questions.
When commodity X sold for N25 per unit, 50 units of commodity Y were purchased. With an increase in the price of commodity X to N50 per unit, the demand for commodity Y fell to 20 units.

Determined the cross elasticity of demand?
A
1.7
B
0.6
C
-0.6
D
-1.7
correct option: a
Users' Answers & Comments
6
Use the information below to answer questions.
When commodity X sold for N25 per unit, 50 units of commodity Y were purchased. With an increase in the price of commodity X to N50 per unit, the demand for commodity Y fell to 20 units.

The two commodities can be classified as?
A
Substitutes
B
durable and non-durable
C
intermediate and final
D
complements
correct option: a
Users' Answers & Comments
7
A central argument of cardinal utility is that utility is?
A
measurable
B
psychological
C
ranked
D
intangible
correct option: a
Users' Answers & Comments
8
In a free market system, trading can only take place when the?
A
market is not working effectively
B
equilibrium price is attained
C
price of a commodity tends to attract consumers
D
consumers sovereignty is lacking
correct option: b
Users' Answers & Comments
9
The condition for equilibrium price and quantity under perfect competition is?
A
MC = AR = TR
B
TC =AR = P
C
MC = AR = P
D
MC = AR = TC
correct option: c
Users' Answers & Comments
10
In a small scale business, the fixed cost is N5,000, variable cost is N15,000 and the output is 500 units. What will be the unit cost of the goods?
A
N400.00
B
N80.00
C
N40.00
D
N20.00
correct option: c
Users' Answers & Comments
Please share this, thanks: